LSAG Legal Briefs - Vol 2

Across the United States, 5.2 msf of new transactions and 4.3 msf of renewals were recorded.

or no columns, state-of-the-art technology, as well as amenity-rich services that the legal sector of today demands. In addition, new construction offers the ability for significantly improved space efficiencies. So, while the face rent of new construction may be 20% to 30% higher, the overall space savings may be 30% to 40% to a law firm, decreasing the per-attorney seat cost.

weighted towards the urban CBD (90% of square footage vs. 56% for other markets). The vast majority of law firms have continued to opt for high-quality space regardless of market, as 87% of all YTD 2019 legal sector deals in the U.S. were signed at Class A assets and in many cases in Trophy Class new construction. Why? Because the new construction provides a law firm with the ideal floorplate size, floor-to-ceiling glass, limited

NEW LEASES VS. RENEWALS

New Leases Renewals

1,000 1,200 1,400 1,600

515

0 200 400 600 800

218

450

177

906

263 SF (Thousands) Source: Cushman & Wakefield Research.

42

269

45

93

180 115

410

389

207

227

202

195

174

58

footage an average of 29%. Current per attorney target ratios have also dropped over the past five years from under 700 square feet per attorney to currently under 600 square feet per attorney.

Per Cushman & Wakefield’s national survey, in 2018, when a law firm renewed its lease, it reduced its overall square footage an average of 19% and when a law firm relocated, it reduced its overall square

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